0207 471 8710

Performance Bonds

Performance Bonds are Contract Guarantee Bonds, in which the guarantor undertakes to pay damages to a third party if there is a breach by his contractor. Performance Bonds issued by Surety companies are used to reassure Employers that the contractor will ‘perform’ in accordance with the Contract.

The ability to provide a Performance Bond from a Surety evidences to the beneficiary that the contractor has a strong financial covenant, enabling the contractor to win new contracts.

It is typically for 10% of the Contract Sum, to cover losses incurred by the beneficiary following a breach of contract, including contractor Insolvency, by the contractor.

They are typically required by contractors operating in the following industry sectors:

  • Construction
  • Property Development
  • Support Services
  • Facilities Management

Information required for a quote

Whilst no means exhaustive, here are the main items you will need

  • Bond application form, specific to the Bond required
  • Bank information form and facility details
  • Bond wording
  • Budget & forecast accounts
  • Current order book and pipeline
  • Last filed full report & accounts
  • Management accounts and supporting balance sheet

Wording check information requirements

  • Duration of works
  • Bond release event
  • Contract type
  • Contract amount
  • Beneficiary
  • Location of works
  • Bond amount
  • Proposed bond wording

Get in touch

As a Specialist Surety Services Provider, DRS specialise in the arrangement of Performance Bonds. We have an approved list of investment grade sureties (typically “A-” Standard & Poor’s or higher) to meet the requirements of Bond beneficiaries.

Please contact us >

0207 471 8710